Principal agent relationship

Similar Matches

Positive Sum Relationship

A positive sum relationship is a relationship between two entities which are, as a sum, better off from the participation of that relationship. This is in contrast to a zero sum relationship, where the outcome of the relationship is a gain for one participant at the direct expense of the other. Examples of positive sum relationships can be found in business transactions (trade in general) and in biology (bumblebee and the flower). Long term positive sum relationships are also known as symbiotic relationships. Zero sum relationships can also been seen in biology (the food chain) and in games, such as chess and checkers. Game Theory tries to predict best decision making outcomes based on the relationships of participants, and the consequence of decisions based on positive sum relationships or zero sum relationships.

Put call parity relationship

The relationship between the price of a put and the price of a call on the same underlying security with the same expiration date, which prevents arbitrage opportunities. Holding the underlying stock and buying a put will deliver the exact payoff as buying one call and investing
the present value (PV) of the exercise price. The call value equals C = S + P - PV(k).

Expected return beta relationship

International Fisher relationship

Theory that nominal interest rates and inflation rates in different countries are connected. The Fisher equation says the nominal interest rate is the product of one plus the real interest rate times one plus the expected rate of inflation.